Lam Research (NASDAQ:LRCX) Trading Up 5.1% – Should You Buy?

Shares of Lam Research Corporation (NASDAQ:LRCX) rose 5.1% during trading on Friday . The company traded as high as $310.30 and last traded at $307.65. 8,336,594 shares traded hands during trading, a decline of 24% from the average daily volume of 10,930,440 shares. The stock had previously closed at $292.66.

Lam Research News Summary

Here are the key news stories impacting Lam Research this week:

• Positive Sentiment: Strong outlook supports semiconductor-equipment demand. Lam Research reported record June-quarter revenue of $6.72 billion and guided for approximately $8.10 billion in September-quarter revenue, reinforcing expectations for continued growth. Lam Research June-quarter earnings release
• Positive Sentiment: Dividend increase improves the shareholder-return story. Lam Research raised its quarterly dividend by approximately 27% to $0.33 per share after its record quarter, which may attract income-oriented investors. Lam Research dividend announcement
• Positive Sentiment: AI-related investment adds to long-term optimism. The company broke ground on a new Oregon research laboratory and plans to invest more than $3 billion in its global lab network over five years to support advanced chip development. Lam Research Oregon lab announcement
• Neutral Sentiment: Recent options activity has drawn investor attention and may indicate expectations for a larger move, although it does not establish the direction of the stock. Options market analysis
• Negative Sentiment: Valuation and insider selling remain risks. Analysts’ targets are generally above the current level, but Lam trades at a demanding valuation after a major multiyear rally. Insiders have reported numerous sales and no open-market purchases during the past six months, potentially limiting enthusiasm. Lam Research valuation analysis

Analyst Ratings Changes

Several research firms have commented on LRCX. Sanford C. Bernstein upped their price target on Lam Research from $325.00 to $340.00 and gave the company an “outperform” rating in a report on Thursday, May 21st. Evercore reiterated an “outperform” rating and set a $355.00 target price on shares of Lam Research in a research report on Monday, July 20th. UBS Group lowered their price objective on Lam Research from $435.00 to $425.00 and set a “buy” rating on the stock in a research note on Tuesday. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and issued a $320.00 price target on shares of Lam Research in a research note on Thursday, July 30th. Finally, B. Riley Financial reduced their target price on shares of Lam Research from $385.00 to $350.00 and set a “buy” rating on the stock in a research note on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and five have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $358.97.

Lam Research Price Performance

The company’s fifty day moving average price is $322.77 and its two-hundred day moving average price is $291.28. The company has a market cap of $384.97 billion, a price-to-earnings ratio of 53.41, a PEG ratio of 1.14 and a beta of 1.85. The company has a quick ratio of 1.91, a current ratio of 2.63 and a debt-to-equity ratio of 0.30.

Lam Research (NASDAQ:LRCX) last announced its earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 EPS for the quarter, topping the consensus estimate of $1.69 by $0.13. The business had revenue of $6.72 billion during the quarter, compared to analysts’ expectations of $6.66 billion. Lam Research had a net margin of 31.27% and a return on equity of 67.60%. The firm’s revenue was up 30.0% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.33 earnings per share. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. On average, equities research analysts forecast that Lam Research Corporation will post 9.33 EPS for the current fiscal year.

Lam Research Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 14th. Shareholders of record on Wednesday, September 23rd will be issued a $0.33 dividend. The ex-dividend date of this dividend is Wednesday, September 23rd. This represents a $1.32 annualized dividend and a yield of 0.4%. This is an increase from Lam Research’s previous quarterly dividend of $0.26. Lam Research’s payout ratio is currently 18.06%.

Insider Buying and Selling

In related news, Director Abhijit Y. Talwalkar sold 18,282 shares of the stock in a transaction that occurred on Monday, July 13th. The stock was sold at an average price of $335.00, for a total transaction of $6,124,470.00. Following the sale, the director owned 87,142 shares of the company’s stock, valued at $29,192,570. This represents a 17.34% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Eric Brandt sold 54,500 shares of Lam Research stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $350.80, for a total value of $19,118,600.00. Following the completion of the transaction, the director directly owned 199,205 shares of the company’s stock, valued at $69,881,114. This represents a 21.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 77,782 shares of company stock valued at $26,755,370. Insiders own 0.31% of the company’s stock.

Institutional Investors Weigh In On Lam Research

Institutional investors and hedge funds have recently bought and sold shares of the company. World Equity Group Inc. raised its position in shares of Lam Research by 0.5% in the 2nd quarter. World Equity Group Inc. now owns 5,576 shares of the semiconductor company’s stock valued at $2,416,000 after buying an additional 29 shares in the last quarter. Tenzing Financial LLC increased its position in Lam Research by 3.5% during the 2nd quarter. Tenzing Financial LLC now owns 1,018 shares of the semiconductor company’s stock worth $441,000 after purchasing an additional 34 shares in the last quarter. Advus Financial Partners LLC lifted its stake in Lam Research by 1.0% in the 2nd quarter. Advus Financial Partners LLC now owns 3,578 shares of the semiconductor company’s stock valued at $1,550,000 after purchasing an additional 34 shares during the last quarter. Paragon Private Wealth Management LLC grew its stake in shares of Lam Research by 1.3% during the second quarter. Paragon Private Wealth Management LLC now owns 2,719 shares of the semiconductor company’s stock worth $1,178,000 after buying an additional 35 shares during the last quarter. Finally, Gibraltar Capital Management Inc. increased its holdings in shares of Lam Research by 3.6% during the second quarter. Gibraltar Capital Management Inc. now owns 1,050 shares of the semiconductor company’s stock worth $455,000 after buying an additional 36 shares in the last quarter. Institutional investors own 84.61% of the company’s stock.

Lam Research Company Profile

Lam Research Corporation (NASDAQ: LRCX) is a global supplier of wafer fabrication equipment and services to the semiconductor industry. Founded in 1980 by David K. Lam and headquartered in Fremont, California, the company develops and manufactures systems used in multiple stages of semiconductor device production, including thin film deposition, plasma etch, wafer cleaning and related process modules and automation.

Lam’s product portfolio covers core process technologies employed by logic and memory manufacturers, with equipment designed to support advanced-node patterning, 3D NAND and other emerging device architectures.